Dollar Declining as Investors Seek High-Risk Assets

The dollar suffered losses on Wednesday, November 25, due to progress in developing a vaccine for the Coronavirus and expectations of financial support from the new US government that led to the transfer of funds from the dollar to high-risk assets.

The US currency recorded its lowest level in two months against the Australian dollar and its lowest level in two years against the New Zealand dollar, both of which are indicators of the level of risk appetite due to their close association with global commodity trade.

Bitcoin, the currency known to be highly volatile, also traded near an all-time high in another indicator of greater investor willingness to take risks.

It is expected that the dollar will continue to decline with the advancement of vaccines and expectations of the nomination of former Federal Reserve Chair Janet Yellen as US Treasury Secretary to calm investor doubts about two big issues surrounding the uncertainty.

The dollar reached $ 1.1904 against the euro today, approaching its lowest level in two weeks. And the pound sterling and recorded 1.3349 dollars, approaching its highest level in more than two months.

Against the yen, the dollar settled at 104.46 yen.

The dollar index, which measures the performance of the US currency against six major currencies, scored 92.121, after dropping 0.4% yesterday. The yuan rose in internal transactions to 6.5799 per dollar, in the hope of improving Sino-US relations under the Biden administration.